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DECISION

Approving the Vietnam post development planning till 2010

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to Decree No. 90/2002/ND-CP of November 11, 2002, defining the functions, tasks, powers and organizational structure of the Ministry of Post and Telematics;

Pursuant to the May 25, 2002 Ordinance on Post and Telecommunications;

Pursuant to the Government's Decree No. 157/2004/ND-CP of August 18, 2004, detailing the implementation of a number of articles of the Ordinance on Post and Telecommunications regarding post;

Pursuant to the Prime Minister's Decision No. 158/2001/QD-TTg of October 18, 2001, approving the Vietnam post and telecommunications development strategy till 2010 and orientations towards 2020;

At the proposal of the Minister of Post and Telematics in Official Letter No. 2075/BBCVT-VCL of October 27, 2004, and on the basis of the appraising opinions of the Planning and Investment Minister in Official Letter No. 4543/BKH-TD&GSDT of July 8, 2005,

DECIDES:

Article 1.- To approve the Vietnam post development planning till 2010 with the following principal contents:

1. The planning's objectives

a/ Development of the postal network

- To develop Vietnam post in the direction of mechanization, automation and computerization, aiming to reach the modern level of advanced regional countries. To separate post from telecommunications for independent and efficient operation and provision of diverse services of international standards.

- By 2010, to achieve an average service level of under 7,000 people per service-providing spot within an average service diameter of under 3 km; to raise the total number of service-providing spots to more than 13,000, taking different forms of post offices, agents, commune post and cultural spots and kiosks, operating in a stable manner across the country. To achieve the target of 100% of communes having post service spots in operation (Appendix 1).

b/ Development of services

To develop post in the direction of raising service quality, combining the provision of public-utility services with commercial services; diversifying types of service; developing many new services so as to meet the socio-economic development requirements and turn post into an independent and effective economic branch.

c/ Development of markets

To tap all domestic resources, create conditions for different economic sectors to join in developing the mail delivery service in a fair and transparent competition environment. To quickly develop, control and firmly hold the domestic market, and concurrently take initiative in expanding business activities in the international market.

To actively exploit the domestic market while expanding operations to the international market. To take initiative in international economic integration according to the multilaterally- and bilaterally-committed roadmaps.

d/ Development of the post industry

To encourage domestic and foreign economic sectors to participate in developing the post industry; encourage forms of foreign investment involving the transfer of high technologies, including investment with 100% foreign capital.

To enhance the absorption of transferred modern technologies; step by step master both software and hardware technologies, turn out products of international standards. To raise the domestic equipment-manufacturing capacity, meeting 60% of the domestic demand for post, telecommunication and informatics equipment by 2005 and 80% by 2010. To accelerate the process of raising Vietnam's labor value content in its products to 30-40% by 2005 and 60-70% by 2010. To enhance cooperation and exchanges, participate in the international labor division market, specialize the production of a number of products in Vietnam; to expand the export market.

e/ Development of human resources

To train and develop professionally qualified human resources that can master modern technologies and techniques and be capable in economic management.

By 2010, to raise the productivity and quality of Vietnam's post labor force to the average level of advanced regional countries.

2. Contents and scope of principal elements of the planning

a/ Post networks

- The service spot network

To build a wide-ranging service spot network with smaller and smaller service diameter. To prioritize the development of multi-service agents, commune post and cultural spots, restrict the development of post offices, creating conditions for reduction of full-time laborers, making full use of social labor, raising postal labor productivity.

- Domestic and international delivery networks

- To raise the capacity of domestic and international delivery networks, invest in specialized means of transport to meet the requirements of postal transportation and mail delivery.

The State shall give priority, supports and favorable conditions for Vietnam Post Corporation to provide domestic and international airmail services and proceed to have exclusive mail flights through cooperating with, and receiving shares from, domestic and foreign airlines.

- Exploitation and sorting centers:

To automate postal sorting and exploitation stages, striving to have 2 automatic sorting centers in operation in Hanoi and Ho Chi Minh city by 2005 and 3 to 5 such centers in different geographical regions, suitable to the circulation areas. Parcels from all over the country shall be processed and sorted automatically from the district level.

b/ Post services

- Major services

To maintain an average growth rate of 10-12%/year for ordinary domestic mail service, 8-10%/year for international mail service, 10-15%/year for domestic parcel service, 10-12%/year for international parcel service and 4-6 letters/person/year.

- Add-on post services

Add-on post services shall represent an increasing percentage of post services and be provided in addition to major post services, at an annual growth rate of between 10% and 20%.

- Public-utility post services and other public-utility tasks

From now to 2010, to ensure that public-utility post services shall be provided at all service spots, meeting the people's use demand and well performing the information tasks of the Party, the State, the Government and administrations at all levels. Based on the State's requirements and the socio-economic and post development situation in each period, the State shall specify the provision of public-utility post services.

Public-utility tasks: By 2010, to achieve the target of 100% of delta communes and most of mountainous communes have Party dailies in the day. Commune post and cultural spots shall play an important role in the provision of public-utility post services and performance of other public-utility tasks, contributing to raising the people's cultural and spiritual life. Based on the socio-economic and post development situation in each period, the Ministry of Post and Telematics shall submit to the Prime Minister for decision specific types of public-utility service.

- Other services

From now to 2010, to enhance the development of new and profitable post services such as express mail service, datapost, consignment service and non-address parcel service, with a view to raising the service quality and competitiveness, increase revenues and profits. More concretely:

+ The express mail service: The domestic and international express mail services shall each increase 15-20%/year on average.

+ Datapost service: To invest in datapost equipment in the central region and the South to expand business service activities. From now to 2010, the average service turnover shall increase 40-50%/year.

+ Consignment post service: To further expand the business scope of the domestic service to all level-2 post offices, a number of level-3 post offices and the international market. To raise the quality of services by developing e-commerce services. To raise the annual turnover growth rate to 15-18% from now to 2010.

+ Non-address parcel service: To develop this service to meet the demand of enterprises. To raise the average output growth rate to 40-50%/year.

+ Financial services: To invest in equipment and networks, especially information technology, in order to develop and raise the quality of such financial services as postal savings, postal money orders. The average annual growth rate of conventional domestic and international postal money order service shall be 10-12% while that of the express postal money order service shall be 15-20%. Postal savings shall become an important channel to attract people’s deposits with a growth rate of 20-25%/year

From now to 2010, to realize the target of prioritizing the increase of turnover and profit in support of the supply of public-utility post services and performance of other public-utility tasks so as to gradually balance revenues and expenditures, then gain profits. To introduce new services such as payment, insurance, bank agency, sale and purchase via postal network, telecommunication service agency, e-post, etc.

Article 2.- Orientations for, and major solutions to, the implementation of the approved planning

1. Orientations

a/ Organizational renovation and development of post networks and services

To separate post from telecommunications by 2007; post shall operate independently and efficiently.

To develop post service spots, post offices, commune post and cultural spots, attaching importance to the development of agents in order to reduce investment and labor costs and mobilize idle social resources for post development.

To develop an optimum and boundless exploitation and transportation network. To further invest in and develop post in the direction of mechanization, automation and computerization, ensuring that labor productivity will double by 2010, compared with 2003.

To raise the quality of existing post services and develop new ones, including package goods services (sorting, packaging, arranging), warehousing, management of the goods supply process, goods sale and purchase via the postal network, thereby creating a goods distribution and payment channel compatible with the country's trade development and contributing to accelerating the development of e-commerce.

To develop such financial services as pension payment and payment services; authorized collection and distribution to service-providing enterprises (collection of life insurance premiums; electricity, telephone and water charges), etc.

To join in the provision of telecommunication services through resale of services or telecommunication agency such as invoice distribution, charge collection, acceptance of requests for services, provision of value added telecommunication services and Internet services.

To use public post networks for the provision of financial services, postal savings, postal money orders, press distribution and other services in accordance with the provisions of the Ordinance on Post and Telecommunications.

To continue providing users with high-quality and safe post services at charge rates below or equal to the average level of regional countries.

To raise the quality of postage stamps in service of payment of service charges of public post networks; develop the postage stamp market to meet the philately demand, aimed at creating a sound stamp market and encouraging healthy philatelic movements inside and outside the country.

b/ Support of enterprises providing public-utility post services

The State shall apply support policies to Vietnam Post Corporation for the provision of public-utility services and performance of a number of other public-utility tasks through an exclusive post service mechanism and other supportive mechanisms.

In the first stage of post renewal, the domestic and international mail delivery service involving mails of up to 2 kg subject to charge rates set by the Ministry of Post and Telematics shall be determined as an exclusive post service of Vietnam Post Corporation. The scope of this service shall be narrowed down gradually in order to step by step open the mail delivery market. Enterprises may provide the mail delivery service beyond the scope of the exclusive post service according to their licenses granted by the Ministry of Post and Telematics.

As from the date of its establishment, Vietnam Post Corporation shall get funding supports from Vietnam Post and Telecommunications Group (founded on the basis of Vietnam Posts and Telecommunications Corporation). The amount of support shall be reduced gradually in subsequent years. The support levels and duration shall comply with the guidance of the Ministry of Post and Telematics.

c/ Application of sciences and technologies

The application of new sciences and technologies must aim at renovating the management and exploitation system so as to raise labor productivity and reduce costs, such as application of postal codes and barcodes in sorting, searching and positioning systems and postal management information systems.

The application of postal sciences and technologies must combine advantages of the wide-area postal network with the flexibility and speed of electronic facilities in order to provide new e-post services such as issuance of invoices and electronic payment, information inquiry, safe emails, etc.

To standardize postal packagings such as envelopes and postal bags for automatic sorting; to popularize and improve the application of postal codes and barcodes to mail and parcel services.

To apply information technology for computerization of all post offices and service spots. To use softwares in exploitation, business, inquiry and search for postal matters. To make and apply software programs to the management, exploitation and provision of all services, establishment of monitoring and positioning systems, development and provision of post services and other services via the Internet.

To develop the post industry in the direction of ensuring good supply of industrial products to meet domestic post demands, as well as products to cater for market demands.

d/ Development of human resources

To train and develop professionally qualified human resources that can master modern technologies and techniques and be capable in economic management.

To attach importance to the training of personnel with high professional qualifications and responsibility to meet the branch's development requirements, especially the training of outstanding engineers and specialists to meet the domestic post development as well as regional and international economic integration requirements in the postal domain.

To renovate postal production and business activities in the direction of not increasing the labor force, adopting reasonable recruitment regimes on the basis of productivity and efficiency, adopting examination, grade and salary regimes for improvement of labor quality. To restructure human resources to be compatible with the development of new post services, satisfying as much as possible the social demand for post services.

e/ Orientations for delivery and mail delivery markets

To develop the delivery market by opening it up for the participation of different economic sectors, unifying and heightening the management role of the State.

To open the mail delivery market for competition, encouraging investment in development of the mail delivery network with modern equipment and technologies and high-quality services, paying due attention to computerization and automation in order to raise the market share of mail delivery services in the future.

The State shall permit and create conditions for different economic sectors to join in the provision of the domestic mail delivery service in the spirit of the Ordinance on Post and Telecommunications and the Government's Decree No. 157/2004/ND-CP detailing the implementation of the Ordinance on Post and Telecommunications regarding post, ensuring users' benefits. To open the mail delivery market according to Vietnam's commitments on international economic integration, permitting foreign enterprises to participate in the provision of the international mail delivery service in such forms of investment as joint-ventures, business cooperation contracts and agents.

2. Solutions

a/ To perfect management mechanisms and policies

- Perfection of the system of legal documents on post.

To promulgate documents guiding the implementation of the Ordinance on Post and Telecommunications and the Government's Decree No. 157/2004/ND-CP detailing the implementation of the Ordinance on Post and Telecommunications regarding post, with the following principal contents:

+ The policy in support of public-utility post services and performance of other public-utility tasks:

In 2005, to promulgate legal documents on the scope of public-utility post services and exclusive post services; determine other supportive mechanisms, including expenditure offsetting, tax and investment preferences, etc., creating favorable conditions for Vietnam Post Corporation to well perform the obligation of providing post services and performing a number of other public-utility tasks.

+ Regime of cost accounting of post services for Vietnam Post Corporation.

In 2006 and 2007, the Ministry of Finance and the Ministry of Post and Telematics shall guide Vietnam Post Corporation in formulating and promulgating a regime of cost accounting of post services in the direction of ensuring separate accounting of services, especially public-utility post services and exclusive post services, determining expenses and costs of public-utility post services and post services as a whole, before proceeding to the determination of the costs of each service stage.

- Development of the mail delivery market

To encourage different economic sectors to join in providing the mail delivery service, ensuring fair competition and interests of service users. Foreign-invested enterprises shall be permitted to join in the mail delivery market suitable to Vietnam's mail delivery market-opening roadmap and commitments made under bilateral and multilateral agreements.

- Postal charge policies

For public-utility post services, the State shall set service charges and charge rates, based on cost prices, and shall, by 2007, adjust the current post service charges which are still below cost prices, ensuring postal business efficiency. The State shall also adopt mechanisms to support Vietnam Post Corporation and offset its losses incurred in the provision of public-utility post services and performance of other public-utility tasks.

- Renovation of the production and business management organization of Vietnam Post Corporation

To renovate the postal production and business management organization by expanding rights and responsibilities of member units, raising business efficiency, raising the service quality, creating an environment for fair competition among enterprises. To expand business lines, enhance cooperation in the provision of services with domestic and foreign parties in compatibility with the business environment under a market mechanism.

To diversify, with appropriate levels and steps, forms of ownership of a number of enterprises in Vietnam Post and Telecommunications Group through equitization, joint venture and association whereby the state capital shall hold a dominant position.

- Renovation of stamp business and management

To plan themes and subjects of postage stamps with a view to planning the issuance thereof, to exploit themes and subjects in a scientific manner in service of the Party's and State's political propagation.

To diversify postage stamp models, meeting consumers' growing demand.

To raise the value and prestige of Vietnamese postage stamps on the international market through investment in the production of postage stamps and personnel training.

- Enhancement of state management and responsibility of coordination with ministries, branches and localities.

To enhance coordination with branches and localities in implementing the post development planning simultaneously with other branch development plannings (especially transport and construction plannings) and local socio-economic development plannings.

b/ To mobilize and efficiently use postal investment capital sources

The State shall adopt investment capital support mechanisms for Vietnam Post Corporation and mechanisms to encourage investment in development of post and mail delivery services.

To encourage investment in forms of business cooperation contracts, joint ventures (in mail delivery), purchase of shares of mail delivery service-providing enterprises, especially for projects on development of new services.

To further attract domestic investment capital by strongly developing agency activities, issuing enterprise bonds and shares (for mail delivery service-providing enterprises) or by other appropriate modes.

c/ To implement key schemes and projects

To implement key schemes and projects so as to create a motive force as well as a foundation for postal development (Appendix 2).

d/ International cooperation

To enhance cooperation with international post organizations on delivery, participate in the programs of action of the Universal Postal Union (UPU) and regional postal unions. To seek opportunities of assistance from international postal organizations in postal technologies and human resource training for development of Vietnam post technologies.

To take initiative in cooperation with international postal services in developing new services, especially those in service of e-commerce. To enhance bilateral postal cooperation and association, especially with ASEAN countries. To increase contacts with, and popularization of the image of Vietnam post to, other countries and parties.

Article 3.- Management and organization of planning implementation

1. The Ministry of Post and Telematics

To formulate and submit to the Government for promulgation or promulgate according to its competence mechanisms and policies for successful implementation of the Vietnam post development strategy till 2010.

To coordinate with the Ministry of Home Affairs and the Ministry of Finance in guiding and directing the development of Vietnam Post Corporation into an independent cost-accounting enterprise of Vietnam Post and Telecommunications Group under the Prime Minister's Decision No. 58/2005/QD-TTg of March 23, 2005; complete the separation of post from telecommunications by 2007 and ensure that revenues will offset expenditures by 2010.

To coordinate with the Ministry of Finance in formulating and promulgating a cost-accounting regime applicable to public-utility post services as well as financial policies and mechanisms to support Vietnam Post Corporation in the provision of public-utility post services and the performance of other public-utility tasks.

To formulate a system of criteria for sound evaluation of efficiency of the provision of public-utility post services, on the basis of socio-economic benefits, which shall serve as a basis for evaluation of efficiency of investment in the public-utility post domain.

To direct the implementation of the scheme on experimental establishment of Vietnam Post and Telecommunications Group and establish Vietnam Post Corporation under the Prime Minister's Decision No. 58/2005/QD-TTg of March 23, 2005.

To coordinate with Vietnam Post Corporation, delivery service-providing enterprises and concerned ministries and branches in formulating a roadmap to open the mail delivery market.

To well organize law enforcement with a view to ensuring a healthy competitive environment for mail delivery.

2. The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Labor, War Invalids and Social Affairs

The Ministry of Planning and Investment shall coordinate with the Ministry of Post and Telematics in directing Vietnam Post and Telecommunications Group and Vietnam Post Corporation to implement key schemes and projects listed in Appendix 2. To study and consider a mechanism on capital support for Vietnam Post Corporation to implement the schemes and projects on development of public-utility post service provision networks and performance of other public-utility tasks.

The Ministry of Finance shall coordinate with the Ministry of Post and Telematics in guiding Vietnam Post and Telecommunications Group in building up a domain- and service-based cost-accounting system, separating public-utility services from exclusive post services and commercial post services, toward determining the cost of each post service.

The Ministry of Finance shall coordinate with the Ministry of Post and Telematics in directing Vietnam Post and Telecommunications Group to study and evaluate charges of public-utility post services, exclusive post services as well as loss-offsetting and supportive mechanisms for Vietnam Posts and Telecommunications Corporation to provide public-utility post services.

The Ministry of Finance shall coordinate with the Ministry of Post and Telematics and the Ministry of Planning and Investment in studying and setting limits of foreign investment capital in mail delivery enterprises.

The Ministry of Labor, War Invalids and Social Affairs shall coordinate with the Ministry of Post and Telematics in guiding Vietnam Post and Telecommunications Group to formulate a suitable mechanism on wages and bonuses.

3. Ministries, branches and localities

Branches and localities shall, according to their assigned functions and tasks as well as their own characteristics, coordinate with the Ministry of Post and Telematics, Vietnam Post and Telecommuni-cations Group and Vietnam Post Corporation in implementing the branch development planning.

Provincial/municipal People's Committees shall, through provincial/municipal Post and Telecom-munications Services, direct the formulation and implementation of local postal plannings and exercise the state management over post and mail delivery, meeting the following requirements:

Creating conditions for Vietnam Post Corporation (with VNPT as the core) to develop networks, provide public-utility post services and perform public-utility tasks, especially in rural, deep-lying and remote areas.

Giving priority to and conditions for mail vehicles to travel to and stop at places where exist post service spots, ensuring that universal post services are provided to all people. Vietnam Post Corporation shall be given priority to establish service spots, install postboxes at public places and population quarters, and letter-boxes for households on the first floor of residential multi-storied buildings where places therefor are available.

Vietnam Airlines shall prioritize the transportation of mails, parcels and packages, meeting the delivery service requirements of Vietnam Post Corporation and mail delivery enterprises.

4. Vietnam Post and Telecommunications Group

To elaborate a post development plan compatible with the Vietnam post development planning till 2010. To implement key projects mentioned in Appendix 2.

To apply and formulate standards and criteria on post service quality, which are compatible with the branch standards promulgated by the Ministry of Post and Telematics. To perform international cooperation tasks assigned by the Ministry of Post and Telematics.

Vietnam Post and Telecommunications Group shall carry out the separation of post from telecommunications and formulate a project on the establishment of Vietnam Post Corporation under the Prime Minister's Decision No. 58/2005/QD-TTg of March 23, 2005; elaborate a scheme on post service charges and report it to the Government by 2007, which shall serve as a basis for the latter to decide on public-utility post service charges and apply a financial support mechanism to Vietnam Post Corporation.

5. Mail delivery enterprises

To elaborate plans for development of the mail delivery service in line with the Vietnam post development planning till 2010.

Mail delivery enterprises shall have the right as well as obligation to participate in the provision of public-utility post services according to the state requirements and policies.

Article 4.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 5.- Ministers, heads of minister-level agencies, heads of Government-attached agencies, presidents of provincial/municipal People's Committees, the president of Vietnam Post and Telecommunications Group, the general director of Vietnam Post Corporation, directors of enterprises dealing in the mail delivery service, and heads of relevant agencies shall have to implement this Decision.